Remove Dividends Remove Enterprise Value Remove Events Remove Price to Earnings
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M&A Terms Every Business Owner Should Know

Class VI Partner

Add-Backs or Adjustments “Add-Backs,” or Adjustments to Earnings, are additions to reported net income figures typically proposed by sellers for one-time expenses (e.g., EBITDA Multiple EBITDA Multiple refers to the multiple of EBITDA used to determine a company’s enterprise value. unusual litigation, moving, etc.)

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Methods of Business Valuation by Their Profitability

Equilest

This multiple is similar, by analogy, to the PER (Price to Earnings Ratio of listed companies). Enterprise Value = Operating Value (x times EBIT or EBITDA). Attractions and limits of the method of multiples to value a company. EV = Result x Multiple. x250% per year. Multiple (M). 33% per year. 25% per year.